Skip to comments.'Temporary' Tax Code Puts Nation in a Lasting Bind
Posted on 12/14/2010 6:39:38 PM PST by Nachum
WASHINGTONWelcome to the world of the temporary tax code.
In the late 1990s, there were typically fewer than a dozen tax provisions that had just a limited lease on life and needed to be renewed every year or so.
Today there are 141.
Now Congress, taking up a deal worked out between the Obama administration and Republican leaders, is poised to turn the whole personal income-tax system into something of a temporary structure. The plan embraces a broad range of provisionsan extension of Bush-era rates, a new estate-tax formulabut for only two years. A payroll-tax cut in the bill is for a single year.
(Excerpt) Read more at online.wsj.com ...
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It's just good engineering. When you have to maintain a house of cards, it's good to have flexibility. Of course, no one thought about hysterisis, and over-correction is already here. It will be classic Tacoma Narrows Bridge kind of failure.
But no-one can foresee that.... in Washington.
The GOP’s new slogan: “Bringing You Expiring Tax Cuts since 2001”
“A payroll-tax cut in the bill”
Correct me if I am wrong but-don’t they mean a cut on funds that were supposed to go to an already underfunded (and on the path to bankruptcy) Social Security system? They are not talking about cutting income tax but instead just the tax that was meant to fund ss.
I'm sure they would have liked to have started in 1989, but it was too soon after Reagan.
The problem with W's tax cuts all along was that they were intended to temporarily spur demand or to buy votes, not to encourage investment or sustainable economic growth. The one exception was the dividends tax cut.
Obamanomics - the Uncertainty Factor
How to increase business risk, thereby keeping the economy in permanent crisis.
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